Johnson & Johnson CEO: Not Relocating Overseas

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Johnson & Johnson (NYSE:JNJ) CEO Alex Gorsky spoke with FOX Business Network’s (FBN) Maria Bartiromo during Opening Bell with Maria Bartiromo about this quarter’s growth saying, it was “lead by our pharmaceutical group.” When asked whether Johnson & Johnson would move their headquarters out of the United States Gorsky said, “No, is the short answer.” Gorsky also commented on tax reform saying, “I think the most important thing we can do is take a much more comprehensive approach to tax reform” and that it “would be in everybody’s best interest.”

Johnson & Johnson CEO on what’s driving growth:

“I couldn’t be prouder of our organization. When you look at the results that we’ve had almost 9.5 percent operational growth this quarter, driven by a number of factors. It’s really a combination of focusing on our long term goals, but also our near term ones as well and certainly lead by our pharmaceutical group. A number of great innovations have really helped patients across a number of great therapeutic categories. And also this quarter we are really pleased to see that our consumer group was up nicely.”

Johnson & Johnson CEO on whether the comparisons will get tougher in the next quarters to come:

“The comparisons are always going to be a challenge when you see the kind of growth that we just had…we really try and focus on the long term and we know if we continue to bring out a number of new products – our research and development group is one of the most productive in the industry when you look at the number of new products launched and the amount we invest in R&D.”

Johnson & Johnson CEO on tax inversion and whether Johnson & Johnson would move out of the United States:

“No, is the short answer. What I would say is as we think about acquiring other companies, new technologies and really manage our business for the long term and the future, taxes is certainly an issue we take a look at. It’s not the primary driver. And we’ve always first look at strategy – is it the right strategy, is it a new technology that’s really going to help patients or consumers, is it a nice complementary fit for our business. Perhaps does it provide us vertical integration and is it a good financial return long term for our shareholders.”

Johnson & Johnson CEO on tax reform:

“I think the most important thing we can do is take a much more comprehensive approach to tax reform. And so we’re trying to work very hard with people in Washington with our colleagues in business to bring that about. And I think there are a lot of different pressures in the system right now, but without a doubt taking a long term comprehensive approach to tax reform would be in everybody’s best interest.”

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